https://www.taxtmi.com/caselaws?id=49606 Compensation received for curtailment or cancellation of an agency was treated as a capital receipt where the agency formed part of the assessee's fixed capital or profit-making apparatus. The majority held that the payment was made for sterilisation of that capital asset, not as a substitute for future commission or trading profits, and that the receipt's character depended on the nature of the asset affected rather than the terminable nature of the arrangement. The fact that the assessee retained the agency in the remaining territory did not change the capital character of the compensation. The dissent viewed the reduction as only affecting the area of distribution and therefore as revenue. en-us Fri, 20 Mar 1959 00:00:00 +0530 Thu, 04 Sep 2014 17:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49606 Compensation received for curtailment or cancellation of an agency was treated as a capital receipt where the agency formed part of the assessee's fixed capital or profit-making apparatus. The majority held that the payment was made for sterilisation of that capital asset, not as a substitute for future commission or trading profits, and that the receipt's character depended on the nature of the asset affected rather than the terminable nature of the arrangement. The fact that the assessee retained the agency in the remaining territory did not change the capital character of the compensation. The dissent viewed the reduction as only affecting the area of distribution and therefore as revenue. Case-Laws Income Tax Fri, 20 Mar 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49606